China improves policies to encourage FDI
May 13, 2010

As increased investments flow into China, the State Administration of Industry and Commerce (SAIC) issued a notice to channel foreign funds more efficiency. While the entire notice can be viewed here, below are the highlights the notice covers –

The SAIC notice seeks to alter policies towards encouraging FDI, optimizing the use of foreign capital, improving services for foreign enterprises and creating a more favorable market environment.

Amongst the incentives Beijing is offering investors are  – foreign enterprises whose parent companies are registered in China can now add the term ‘Group’ to their name.
Wholly foreign-owned enterprises in the service or high-tech industry with a registered capital of at least RMB30 million will now be allowed to use the word “China” in the middle of their company title.

In order to expand economic cooperation and encourage technological exchanges, the SAIC will also encourage partnerships and help ease funding difficulties for foreign enterprises. R&D centers, financial institutions and the outsourcing industry are areas that will be further encouraged by the SAIC.

The SAIC will work towards improving service to foreign companies at every stage of incorporation or expansion. The regional transfer of foreign enterprises will also be eased by speeding up communication between regional departments when a foreign company plans to expand in China.

In order to create a more favorable market environment, the SAIC has said it will also work towards maintaining a more fair competition in the marketplace, crack down on illegal sales, protect consumer rights, guide foreign enterprises in improving their trademark registration and play an active role in administration guidance.


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